GoPro Says Profitability In Sight As Results Top Expectations

GoPro delivered better-than-expected results in its second quarter, sending shares surging in after-hours trading on Thursday.

The wearable camera company has been trying to stem its losses. During the quarter, it reported a loss of $31 million, or 22 cents per share, compared to $92 million, or 66 cents per share, a year earlier. Excluding certain items, GoPro lost nine cents per share. That topped the 25 cent loss that Wall Street analysts had been forecasting.

GoPro has lost money for the last seven straight quarters, yet has been adamant that it is on track to return to profitability in 2017. It repeated that promise on Thursday. However, it's not sure which way the third quarter will go. It thinks that adjusted earnings could be as high as five cents per share or as low as a six-cent loss.

"GoPro is building momentum," said founder and CEO Nick Woodman in a statement. "Strong demand combined with our cost management and margin initiatives contributed to GoPro's EBITDA positive performance in the second quarter."

GoPro has initiated several rounds of layoffs as part of its cost-cutting measures, meant to boost its bottom line and keep its pledge to investors.

Sales have also been moving in the right direction. Revenue rose 34% to $297 million, beating analyst estimates of $270 million. More than half of its revenue came from outside the U.S.

The company, which was once a stock market darling, has been dogged by skepticism that it can be more than a one-trick pony with a product that appeals to adventure junkies. GoPro has expressed high hopes for its Karma drone, which is priced at $799. It also plans to introduce the HERO6 and a spherical camera dubbed Fusion later this year.

Shares of GoPro, which have slid 5% this year, jumped 16% in after-hours trading.